Mario Blejer and Eduardo Levy Yeyati

Mario Blejer & Eduardo Levy Yeyati

About the author:

Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.

The ECB's recent decision to lend unlimited funds to eurozone commercial banks at very low rates acknowledges the need to address a core drawback in the euro-architecture: the ECB itself. However the banks use the money, it is now clear that the eurozone’s future will be determined largely by the ECB.

Europe, it seems, is determined to resolve its problems using other people’s money. But there are at least three reasons why the IMF should resist this pressure, and abstain from increasing its (already extremely high) exposure to Europe.